SOLUTION: hans opens a savings account by depositing $1200 in an account that earns 3% interest compounded weekly. how much will his investment be worth in 10 years? assume there are exactly
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Question 742265: hans opens a savings account by depositing $1200 in an account that earns 3% interest compounded weekly. how much will his investment be worth in 10 years? assume there are exactly 52 weeks in a year and round your answer to the nearest cent
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Use the compound interest formula:
A = P(1+r/n)^(n*t)
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where
A = amount in the account after t years
P = initial amount invested
r = interest rate (in decimal form)
n = compounding frequency
t = number of years
In this case
A = unknown (we're solving for this)
P = 1200
r = 0.03 (3% = 3/100 = 0.03)
n = 52 (we're compounding the amount in the account 52 times a year)
t = 10
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Plug all these values into the equation to get...
Don't forget to round to the nearest penny.
So his investment will be worth $1,619.69 in 10 years.
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